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Australian Dairy Farms cashes up as China milk boom unfolds

Australian Dairy Farms cashes up as China milk boom unfolds

Australian Dairy Farms Group (ASX:AHF) has raised A$1.5 million from existing security holders seeking to exercise loyalty options in the company as Chinese investment in local dairy businesses heats up.

Stock in Australian Dairy Farms was last trading at A$0.305, or more than double is value only three weeks ago.

This surge has coincided with a string of news related to increased Chinese activity in Australian dairy, including some $10 million in local investments by Green Lake, a China-backed business aimed at exporting fresh milk. 

Since Australian Dairy Farms announced a move to acquire Camperdown Dairy Company in late December, the number of registered security holders in the company has increased from around 1,400 prior to the announcement of the acquisition to about 4,400.

This provides the group with a significant retail base to complement the solid institutional support it already enjoys.

Funds raised from the exercise of options will be used to further strengthen the company’s balance sheet as it moves towards completion of the Camperdown acquisition and for general working capital purposes.

A further 18.6 million options equating to about $4.6 million remain outstanding for exercise prior to the end of March.

Acquisition of Camperdown will make Australian Dairy Farms the country’s first listed vertically integrated farmer, processor and exporter of dairy and fresh milk.

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